The Reserve Bank of India’s (RBI) board is set to meet today, May 22. This meeting is important because the central bank will announce its annual dividend for the government for the financial year 2025-26. Reports indicate that the RBI will transfer a record surplus of around Rs 3 lakh crore for FY26, compared toRs 2.69 lakh crore last year.
RBI declare Record Dividend for FY26
The FY25 dividend of Rs 2.69 lakh crore was 27 % higher than the payout of Rs 2.11 lakh crore in FY2023-24.
According to the RBI’s Economic Capital Framework, the bank should keep a contingency reserve of 4.5 % to 7.5 % of its balance sheet and transfer the rest to the government. The reserve currently stands at 7.5 %.
What Analysts Expect
Analysts expect dividends to fall between Rs 2.7 lakh crore and Rs 3.2 lakh crore. Madan Sabnavis, chief economist of Bank of Baroda, suggested the dividend could reach Rs 3-3.2 lakh crore, primarily due to the contingency buffer requirement. He mentioned that if the RBI reduces the contingency risk buffer to 7 % from the current 7.5 %, it could release more funds.
However, a report from IDFC FIRST Bank predicts the RBI dividend will be around Rs 2.7 lakh crore. This estimate supported by interest income on foreign securities and rupee securities, although gains from forex transactions expected to lower than last year.
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